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Dutch journalists are investigating corruption at the Kazakhstani oil field Prorva.

Submitted by Вера Александрова on

Journalists from the Netherlands have published an investigation into the activities of Dutch companies Van Oord, Witteveen and Bos and the Kazakh LLP «TenizService».

According to PetroCouncil.kz, in the summer, Dutch journalists visited Atyrau, where they spoke with informed individuals.

They write that the Dutch engineering firm Witteveen and Bos, together with the dredging company Van Oord, developed a project for a port and canal near the Prorva oil field.

The companies collaborated with LLP «Teniz Service», which lacked sufficient competence to implement it. According to the journalists, this project was a so-called «invitation to bribery».

«The excessively expensive dredging contract was unjustified, according to a manager at North Caspian Operating Company (NCOC). But terminating such a contract was difficult because the relationships were intertwined», the statement says.

It has become known that the company «TenizService» received a $1 billion contract from LLP «Tengizchevroil» (TCO) for the construction of the port and canal. It immediately hired Witteveen and Bos for design and Van Oord for dredging the canal.

«According to internal TCO correspondence, «TenizService» is the project executor, but no decision is made without TCO. TCO sent about 200 of its employees to this project to ensure everything went well», the statement says.

It is reported that the Dutch contractors were dissatisfied with the local partner and took over nearly all project coordination. It is noted that the foreign companies even paid for most of the fees for subcontractors hired by «TenizService».

Ultimately, the budget for the port and canal increased from $1 billion to $2.4 billion. The project was completed in 2018.

For its part, JSC «NC «KazMunayGas» opposed the construction of the canal, considering the project ecologically fragile, and wanted TCO to consider alternative options.
TCO almost agreed with the arguments, however «TenizService» boasted of «good relations with the authorities» and guaranteed it could obtain all permits within 62 weeks

«Everyone understood that «TenizService» had no experience with such large-scale projects, but this did not bother TCO. An employee wrote that the 'connection with «TenizService» bypassing legal requirements' was the sole reason it received the contract», the statement says.

It has become known that law enforcement authorities in the Netherlands are now conducting a criminal investigation into bribery by Van Oord. Journalists write that the public prosecutor suspects the company of bribing the father of the son-in-law of former President of the Republic of Kazakhstan, Nazarbayev.